Overview

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry issues IEC registration. Indian companies are required to have IEC registration if companies want to expand their business through imports and exports. Import Export Code is a ten digit code issued by DGFT, Import Export License Certificate is intended to regulate and monitor foreign trade activities in India.

It is mandatory to get IEC registration to carry out import export activities in India, no business can be involved in import export activity without IEC license. Also, if a business wants to entertain the benefits provided by the government, it is necessary to obtain IEC registration. The Reserve Bank of India has made it mandatory for all traders to provide their own import export code during any payment transfer.

In the current era of increasing competition, businesses are moving out of their local presence, to keep their options alive in the domestic market. With the back-to-back innovations and the generation of new ideas in business, the emergence of e-commerce, the operation of business across local borders by stepping abroad and operating globally seems important.

There are many ways to go beyond the domestic level, such as amalgamation for foreign brands, opening franchises abroad, starting subsidiaries or branch offices abroad, or through an import-export business. Trading globally is not as easy as it sounds.

Import Export Code (IEC) once gave can be utilized by the entity all through its existence and it doesn’t necessarily need any renewal. When the organization has gotten IEC, at that point the organization can involve in import export necessities with no issues.

Benefits

By now it is clear that the Import Export Code is a ten-digit code, which is required to get every business that wants to be involved in import export activities. DGFT issues IECs in India. IEC registration is the first thing that businesses are required to import or export any item from India to any other country. IEC registration paves the way for many new opportunities for business personnel.

Here are some benefits of IEC registration:

• Expansion Of Business

  With the help of IEC business can expand its reach in the global market. IEC provide the opportunity to business to export its goods and products outside the nation’s territory and create a name for oneself in the international market.

• No need for return filing

  is not included in the IEC return filing. Once an IEC is allocated, there is no need to follow any kind of procedures to support its validity. In any event of export transaction, DGFT does not order the filing of any return.

• Hassle-free processing

  It is really easy to get IEC from DGFT and same can be obtained within 10-15 days in view of application submission. No proof of export or import is required after obtaining IEC code.

• Free for Lifetime

  Once you get IEC, you can enjoy its validity for eternity as it is free for lifetime and there is no need for any renewal.

• Government certifies proof

  The import export code is a government identification issued by DGFT. Anyone can show this identification number at the time of shipment approval.

Required Documents

The documents required for IEC registration are as follows: -

• Scanned copy of proof of incorporation / installation / registration for the specified unit. This supporting document is mandatory for Registered Society, HUF, Partnership, Trust, Others.
• Scanned copy of photograph (passport size)
• PAN of company / individual / partnership firm / LLP
• ID proof of the person - Aadhaar Card, Passport, Voter ID, Mobile no. And email-id
• You must have a current or savings bank account in a bank that contracts and transacts in foreign currency.
• You should have scan copy of rent / lease deed, sale deed, electricity / phone bill for address verification
• If an applicant is a Non-Resident Indian (NRI) or a non-resident interest in the company / firm, then you need to submit a scanned copy of the RBI approval letter.
• You should have ‘Bankers Certificate’ in the prescribed format OR he should have a scanned copy of ‘Cancelled Cheque’ with Entity’s or Individual’s name pre-printed on it.
• You should have a ‘Debit/Credit card or Net Banking account’ for Online payment of Government Fees of Rs. 500/- only.
• In case of company as applicable, you must have the details of Proprietor and all partners in case of firm or Director
• User should have an active Aadhaar or DSC of the firm’s member for submission.

Types of DSC permissible for IEC application

So, are you ready for IEC registration and a step ahead to run your business in other countries? If you are stuck somewhere in the documentation process or if it seems confusing, there is no need to worry, servzone will be actively there to help you, just consult our team and complete it seamlessly .

Exemption of IEC

• Individuals involved in import and export of goods for personal reasons and not involved in trade, horticulture and manufacturing are absent from obtaining IEC registration.
• Those who export / import products to / from Nepal and Myanmar through the Indo-Myanmar Fringe Zone and China, with a single transfer of Indian cash of Rs. 25,000, does not require IEC.
• Exception from acquiring IEC will not be appropriate for export of Special Chemicals, Organisms, Materials, Equipment’s and Technologies (SCOMET) as listed in Appendix - 3, Schedule 2 of ITC (HS).

Requirment for IEC registration

• IEC registration is important for importing and exporting goods. It passes on the vendor code description along with the port through which the objects or administrations are being imported or exported. Illegal conveyance of goods is limited, and later the IEC helps reduce this because it is practically difficult to obtain an import-export code without giving the total data of things being imported or traded.
• If you have an IEC number, the Customs Officer will clear your shipment as an importer.
• To send money abroad Bank requires IEC registration
• An exporter needs IEC registration at a custom port to clear their shipment
• IEC registration is required when an exporter receives payment in foreign currency directly in his bank account
• The government of other countries verifies the merchant only on the basis of IEC registration.

Amendment Under IEC for Goods and Services Tax

After execution of Goods and Services Tax in GST system, GSTIN will be used for the credit stream of IGST paid on import of products. In any case, PAN is the identifier at the substance level of the border although GSTIN will be used as an identifier at the exchange level for each import and export. UIN or PAN will be accepted as IEC. All importers are required to cite GSTIN in their requests irrespective of IEC.

It is clear that in the case in which one hopes to maintain the business on a large scale, at that point it should obtain an import export code from DGFT. Without an IEC license, no one can take up the matter of import and export under any circumstances. From the facts depicted above, we can assume that obtaining certification for IEC is not exclusive. In discussing the advantages of this, we can say that there is no brain pain of filing any returns, the process is quite simple, no renewal is required, and after that.

Key Features

• No business can engage in import / export activities without IEC registration
• It works as a proof that a firm is involved in import / export of goods and products
• Once obtained, an IEC exists for a lifetime. This means that it does not require any renewal.
• It is not mandatory to be involved in the import or export of goods for personal or legislative purposes.
• IEC is mandatory for foreign bank transfers
• It is sufficient for all parts of the business of importers or exporters.

Registration Procedure

One can apply for IEC on its website as DGFT is an only authority to issue IEC. At present, DGFT with effect from 1^st July 2020 has introduced an updated procedure & a new way to apply IEC online in which DSC would be obligatory to upload. The requirement of DGF has been announced by DGFT to strengthen the IEC issuance process and prevent fraud.

IEC or Import Export Code is issued by DGFT (Director General of Foreign Trade), Department of Commerce, Government of India, which is a ten digit identification number. It has lifelong validity. It is also known as “Importer and exporter code” which helps a person import and export goods officially. Importer cannot import goods having no valid IEC code. Also, the exporter cannot avail the export scheme benefit accessible from DGFT deprived of having proper IEC code.

The procedures for IEC code registration are as follows:

Step 2: You need to enter the Registration Details which are stated below:-

• Register User as “Importer/ Exporter”
• First and Last Name
• Email id & Mobile number of the applicant
• Pincode, District, State and City

Click on the “Send OTP” button after inserting the details. Put the OTP received on mobile no. and mail id. You shall receive a notification comprising the temporary password on your mail id upon Successful validation of the OTP, which you need to change upon your first login. Now, click on “Apply IEC” button &apm; click on start fresh application option once the user registers and log - in to the “Customer Portal” using the identifications entered in step 2.

Step 3: Now, you start filing the details in the IEC code registration form which are as follows:-

1. General Information

• Nature of Anxiety
• Firm / Company Name
• Installation pan
• Enter the name as per PAN card
• Inclusion of unit / date of birth
• Category of exporter means that manufacturer is exporter or merchant exporter or service provider or merchant cum manufacturer exporter or any other category.
• Choose the option whether the firm is located in a Special Economic Zone (SEZ).
• Choose option, whether the firm is located in Electronic Hardware Technology Park (EHTP) Scheme, Export Oriented Unit (EOU) Scheme, Bio-Technology Park (BTP) Scheme or Software Technology Park (STP) Scheme?
• Enter CIN / LLPIN in case of LLP / Company
• Enter GST Number
• Enter mobile number and mail for communication purpose
• Upload the proof of incorporation / installation / registration for the given unit. This supporting document is mandatory for Registered Society, HUF, Partnership, Trust, Others.
• Enter firm address details
• You need to upload supporting documents as “Proof of Address”. This can be any of the following document:

  i. Rent agreement, Sale Deed, lease deed, mobile, electricity bill, MoU, telephone landline bill, post-paid bill.

  ii. Other suitable documents (for proprietorship only): passport, Aadhar card, voter id.

  iii. A NOC (no-objection certificate) by the firm premises owner in favour of the firm along with the address proof may be uploaded if the address proof is not in the name of the applicant firm.

Select “Save and Next” option after filling the above details successfully.

2. Now, you need to add details of Proprietor/ Director/ Karta/ Partner/ Managing Trustee of the entity/establishment which includes the following agendas:-

• Enter the name according to the PAN record
• Enter the PAN number of the person, ie proprietor / director / doer / partner / managing trustee
• Insert the date of birth as per PAN card
• Address of proprietor / director / doer / partner / managing trustee
• Mobile number of proprietor / director / doer / partner / managing trustee

Select “Save and Next” button after filling the above details successfully.

A. Enter bank Information of the Entity

Bank Information’s like Account holder Name, Bank and Branch name account number, IFSC code. You need to also upload cancelled cheque of the bank account or Bank certificate as per the prescribed Performa.

Select “Save and Next” button after filling the above details successfully.

B. Now, you need to select other Details i.e. preferred sectors of operations.

Click on the “Save and Next” button after filling the above details successfully.

C. Select the acceptance of undertaking/declaration and fill the Place as well.

After that, click on “Save and Next” button to proceed further

Step 4: Concluding Submission:-

Click on “Sign” button at the lowermost part of the page - after step 3.

• Now, you need to select the mode of submission i.e. either through Aadhaar OTP or Digital signature certificate. Enter the ‘Virtual ID/ Aadhaar number’ and click on get OTP in case of Aadhaar OTP, and submit the form
• Confirm it and proceed to make the payment against application after the signing of prescribed form is done. For Payment (The Application of IEC Fee is Rs 500) you shall be redirected to ‘Bharatkosh’ Payment Gateway.
• Page will be redirected to the DGFT Website after Successful Payment and the receipt shall be displayed to you. You can also download the receipt for your future reference. However, please wait for an hour to reflect the payment from the ‘BharatKosh’ Payment Gateway in case of payment failure.

Explanation for the Users: - The user will receive the IEC Certificate in the email (used at the time of applying for IEC). However, if required, after login the DGFT Website and using “Print Certificate” feature in “Manage IEC” - the User can also download the IEC Certificate. After that, the IEC shall be communicated to CBIC. Moreover, the transmission status can be seen by directing to navigate “My IEC” and checking the ‘IEC Status bar’ with “CBIC Transmission Status”.

Reminder: The applicant must update the PAN of the Signatory under “My Dashboard” tab as well as select “View register digital signature Token” In order SIGN the IEC form.